The British broadcaster was found to have committed a "serious breach" of industry standards by failing to disclose that the narrator of a programme about the Gaza situation was the son of a Hamas administrator, according to regulatory body Ofcom.
An inquiry by the media regulator into Gaza: How to Survive a Warzone has concluded that the film was "significantly deceptive".
The head of the BBC had earlier expressed regret, saying there had been "a major oversight in relation to truthfulness".
Ofcom has ordered the broadcaster to air a prime-time statement about its decisions.
"Since this amounts to a serious breach of our regulations, we are instructing the BBC to transmit a announcement of our findings against it on BBC Two at 9pm, with a schedule to be confirmed," the statement read.
'Possibility to Damage Confidence'
The watchdog's report declared: "Our probe determined that the documentary's omission to reveal that the presenter's father served in a post in the Hamas-controlled government was significantly deceptive.
"This implied that the public did not have critical information which may have been very significant to their evaluation of the presenter and the details he shared.
"Confidence is at the core of the connection between a media organization and its audience, particularly for a state-funded media outlet such as the British Broadcasting Corporation.
"This error had the risk to erode the exceptionally strong levels of credibility that audiences would have placed in a BBC factual programme about the Israel-Gaza war."
The documentary was removed from the online platform in last February after the boy's personal associations came to light, and in the month of July an internal BBC review found it violated the corporation's content policies on truthfulness.
A BBC spokesperson said: "The regulator's decision is in agreement with the results of the internal assessment, that there was a serious error in the film in relation to the corporation's content standards on truthfulness, which corresponds to clause 2.2 of Ofcom's Broadcasting Code.
"We issued an apology for this and we agree with the authority's determination in its entirety. We will adhere to the sanction as soon as the date and language are determined."
